Former FBI director to probe Gulf spill claims administrator’s office

A judge appointed former FBI Director Louis Freeh to investigate whether there have been ethical violations or other misconduct committed by staff for the claims administrator who is doling out money from BP’s Gulf oil spill victims’ settlement. (Associated Press)

A federal judge has appointed former FBI Director Louis Freeh to investigate whether there have been ethical violations or other misconduct committed by staff for the claims administrator who is paying out money from BP’s settlement with victims of the Gulf oil spill.

U.S. District Judge Carl Barbier said Tuesday that while the administrator, Patrick Juneau, is conducting an internal probe, he believes an external, independent inquiry is needed to ensure the integrity of the settlement program.

Barbier said Freeh’s duties will be limited to finding out whether there have been any ethical violations or other misconduct in Juneau’s office, examining and evaluating the internal compliance program and anti-corruption controls within the settlement program, and making any necessary recommendations.

Freeh’s appointment follows the recent disclosure that a staff attorney working for Juneau in connection with the settlement program resigned over allegations of impropriety.

The settlement was with thousands of individuals and businesses harmed by the worst offshore oil spill in U.S. history. BP initially estimated the deal would cost $7.8 billion, but has stopped estimating its total exposure because of a dispute over how Juneau is calculating business economic loss claims.

A federal appeals court hearing is set for Monday in New Orleans in connection with that dispute.

Freeh is chairman of a consulting firm, Freeh Group International Solutions, and is also chairman of the executive committee of a law firm, Pepper Hamilton.

In a disclosure form filed with the order appointing him to investigate the spill claims administrator’s office, Freeh said his business relationships have crossed paths with several of the parties in the spill case, including BP, Halliburton and Anadarko. Freeh said one of his former law partners has served as an ombudsmen for BP America, the British oil giant’s U.S. unit.

In a statement, BP called Freeh’s probe “an essential step in assuring public confidence” in the settlement program.

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Former FBI Director Louis Freeh leaves Federal Court after meeting with U.S. District Judge Carl Barbier, who appointed Freeh to investigate alleged misconduct by a lawyer who helped run BP's multibillion-dollar settlement fund for the Gulf oil spill. Freeh recommended Friday, Sept. 6, 2013, that the Justice Department investigate whether several lawyers plotted to corrupt the settlement program designed to compensate victims of BP's 2010 Gulf oil spill. less

Former FBI Director Louis Freeh leaves Federal Court after meeting with U.S. District Judge Carl Barbier, who appointed Freeh to investigate alleged misconduct by a lawyer who helped run BP's ... more

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Steve Newman, president and CEO of Swiss-based Trancocean Ltd., leaves Federal Court after testifying in New Orleans, Tuesday, March 19, 2013. Transocean was the owner of the rig Deepwater Horizon, which was ... more

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Lamar McKay, former president of BP America and current chief executive of BP's Upstream unit, leaves Federal Court after testifying in New Orleans, Monday, Feb. 25, 2013. McKay, who was president of BP ... more

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Robert Kaluza, a BP well site leader from the Deepwater Horizon oil rig explosion, enters Federal Court before he is arraigned on manslaughter charges in New Orleans on Wednesday, Nov. 28, 2012.

Robert Kaluza, a BP well site leader from the Deepwater Horizon oil rig explosion, enters Federal Court before he is arraigned on manslaughter charges in New Orleans on Wednesday, Nov. 28, 2012.

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A protester's sign lies outside a meeting where residents were able to get face-to-face time with BP and government officials at one of a series of open houses in New Orleans on June 23, 2010.

Photo: Smiley N. Pool / Houston Chronicle

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The letters BP, inscribed in sand and oil by a Greenpeace activist, are shown on a beach at the mouth of the Mississippi River on May 17, 2010 near Venice, La.

The letters BP, inscribed in sand and oil by a Greenpeace activist, are shown on a beach at the mouth of the Mississippi River on May 17, 2010 near Venice, La.

Photo: John Moore/Getty Images

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Melanie Driscoll, director of Bird Conservation for the Louisiana Coastal Initiative, holds up oil residue on April 8, 2011. The Louisiana Department of Wildlife & Fisheries gave a press tour to show the ... more

Photo: James Nielsen / Houston Chronicle

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A cleanup worker, wearing a protective coverall and carrying a small scoop, punctuates an otherwise typical holiday beach scene as patrols the beach looking for tar balls on Independence Day 2010.Tourist ... more

Photo: Smiley N. Pool / Houston Chronicle

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A member of Louisiana Gov. Bobby Jindal's staff reaches into thick oil on the surface of the northern regions of Barataria Bay in Plaquemines Parish, La. on June 15, 2010.

Photo: Gerald Herbert/AP

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Photo: Dave Martin/AP

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A brown pelican stained with oil takes flight while a bird rescue team tries to capture it for cleaning on June 5, 2010 in Grand Isle, Louisiana.

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Photo: Win McNamee/Getty Images

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Patches of oil from the Deepwater Horizon spill are seen underwater in the Gulf of Mexico, south of Venice, La., on Monday, June 7, 2010.

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Photo: Rich Matthews/AP

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A boat is surrounded by oil near the site of the Deepwater Horizon explosion and oil spill on Tuesday, June 15, 2010.

A boat is surrounded by oil near the site of the Deepwater Horizon explosion and oil spill on Tuesday, June 15, 2010.

Photo: Smiley N. Pool / Houston Chronicle

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A shrimp boat is used to collect oil with booms in the waters of Chandeleur Sound, La.

A shrimp boat is used to collect oil with booms in the waters of Chandeleur Sound, La.

Photo: Eric Gay/AP

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People gather near crosses for the 11 workers who died in the Deepwater Horizon oil rig explosion, during a vigil to mark the first anniversary of the BP oil spill on a beach in Grand Isle, La.. The large ... more

Photo: Patrick Semansky/AP

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Oil floats in the waters of Chandeleur Sound, La. two weeks after the explosion of the Deepwater Horizon oil rig in the Gulf of Mexico.

Oil floats in the waters of Chandeleur Sound, La. two weeks after the explosion of the Deepwater Horizon oil rig in the Gulf of Mexico.

Photo: Eric Gay/AP

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Oil from the Deepwater Horizon spill floats on the water as the sky is reflected in sheen on Barataria Bay, off the coast of Louisiana on June, 7, 2010.

Oil from the Deepwater Horizon spill floats on the water as the sky is reflected in sheen on Barataria Bay, off the coast of Louisiana on June, 7, 2010.

Photo: Charlie Riedel/AP

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The Deepwater Horizon oil rig burns in the Gulf of Mexico on April 21, 2010, more than 50 miles southeast of Venice on Louisiana's tip.

The Deepwater Horizon oil rig burns in the Gulf of Mexico on April 21, 2010, more than 50 miles southeast of Venice on Louisiana's tip.

Photo: Gerald Herbert/AP

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Fire boat response crews battle the blazing remnants of the off shore oil rig Deepwater Horizon on April 21, 2010. The blowout in the Gulf of Mexico killed 11 people and sent 4.9 million barrels of oil gushing from the sea floor into the Gulf. less

Fire boat response crews battle the blazing remnants of the off shore oil rig Deepwater Horizon on April 21, 2010. The blowout in the Gulf of Mexico killed 11 people and sent 4.9 million barrels of oil gushing ... more